Charles Schwab today launched its automated exchange-traded fund investment advisory service, called Schwab Intelligent Portfolios.
The service builds, monitors and rebalances portfolios based on an investor’s goals and risk tolerance.
Investors with a minimum of $5,000 will receive a portfolio recommendation after answering questions that assess their investment objectives and the portfolios are automatically rebalanced as the market changes, according to Schwab.
Intelligent Portfolios will draw from 54 different ETFs and 27 asset classes from Schwab and third-party providers, including Vanguard, iShares and PowerShares.
The program can be accessed with desktop computers and mobile devices and has the ability to fund accounts using mobile check deposit.
No advisory fees, commissions or account services fees will be charged, according to Schwab, which plans to make money from investing client cash residing in the robo-platform and from management and product fees when ETFs it manages or sells are used in Intelligent Portfolios.
A version of the service for independent registered investment advisors who custody their client assets with Schwab will be available in the second quarter, said Schwab executive vice president Naureen Hassan, who leads the team responsible for Schwab Intelligent Portfolios.
The advisor solution, Institutional Intelligent Portfolios, will allow RIA firms to modify asset allocations and customize portfolios from a pool of eligible ETFs. Advisor pricing options will be available, including a version with no program management fee, and advisors will be able to incorporate their firms’ branding, according to Hassan.